India’s Gulf relations will overcome recent setbacks

Significance

In June, he stopped over in the UAE on his return from the G7 summit in Germany, where he was a guest. India’s Gulf ties have recently encountered turbulence because of comments about the Prophet Muhammad by officials from Modi’s Bharatiya Janata Party (BJP).

Impacts

• Robust remittance flows overall may not be enough to ease concerns about India’s widening current account deficit.
• The UAE will try to partner with Indian tech firms to help further its ambitions of becoming a regional fintech hub.
• India will continue to push back on internal and external criticism over the treatment of its Muslim minority.